SPEECH OF 

SENATOR FORAKER 

AT THE 

Republican Campaign Opening 

AT 

BELLEFONTAINE, OHIO, 
September 23, 1905. 



Fellow Citizens : 

Before saying anything else, I want to congratulate Judge 
West upon the long life, bodily strength and extraordinary 
mental vigor with which he is blessed. It has been my for- 
tune to know a good many remarkable men, but I have 
never known his equal for devotion to public interests, loy- 
alty to Republican principles, and eloquent advocacy of all 
that is best in American life. His patience under affliction, 
his perseverance and his accomplishments have been an in- 
spiration to thousands who hold him and his character in 
highest esteem and most grateful appreciation. I trust 
there may in store for him many additional years of life and 
that his last days may be his happiest and best. 

I have noted with much satisfaction Governor Herrick's 
repeated announcements that he challenges and defies all 
critics and enemies of either himself or his administration, 
and that there is no charge against either that he is not 
ready, anxious and able to meet. 



/ 
/ 






HERRICK S MANLY STAND. 



That is a manly and fearless stand for him to take. It is 
worthy the Governor of a great State. Such a man does 
not need any special help or defense. He can be relied upon 
to take care not only of himself, but also of his assailants. 

For this reason and because of his greater familiarity 
with such matters, I gladly leave to him, so far at least as 
this occasion is concerned, the discusion of State affairs. 

I do this the more readily because I have entire confidence 
that investigation will disclose that the public institutions 
have been faithfully and economically conducted ; that pub- 
lic funds have not been wasted ; that tax burdens have not 
been made heavier than the public good has required, and 
that in all respects the State is in a healthy and prosperous 
condition. 

In all these particulars Governor Herrick has been faith- 
ful, efficient and successful. It is for this reason that it will 
be a pleasure to him to render an account of his stewardship. 
Attacks upon him will but prove opportunities to set forth 
the excellence of his administration. 

NATIONAL AFFAIRS. 

While Governor Herrick has been dealing with Ohio af- 
fairs it has been my fortune to be connected, in a humble 
way, as one of your representatives, with National legisla- 
tion and National policies. These are not directly involved 
in the approaching election, but indirectly they will be im- 
portantly affected. 

If Ohio should fail to give the usual Republican major- 
ity it would, in the absence of explanation, be an indication 
that the people are displeased with Republicanism, and that 
would have the double effect of discouraging Republicans 
and encouraging Democrats, not only in Ohio, but every- 
where. 

By Tr3»^er. 

23*S*'08 



\ 



\ 



This is of itself a sufficient reason for the discussion of 
National politics in this campaign, but there is another and 
a more commanding reason therefor in the fact that the plat- 
forms of the parties adopted at their respective State con- 
ventions openly join issues on National questions. 

MUST APPROVE ROOSEVELT. 

Therefore, when we vote in November we must, whether 
we wish it so or not, cast our ballots for or against not only 
the record that has been made at Columbus, but also for or 
against the record that has been made at Washington — not 
only for or against Herrick. but also for or against Roose- 
velt. 

In other words,- the issue, and practically the only issue 
we have this year, is the Republican party versus the Demo- 
cratic party. 

It was in recognition of this fact that, with the Presi- 
dent's hearty approval. Secretary Taft, Ohio's distinguished 
member of the Cabinet, was chosen to preside at the Repub- 
lican State Convention that renominated Governor Her- 
rick and there sounded the keynote for this campaign, pro- 
claiming directly to the voters of Ohio not only the Presi- 
dent's views on the public questions of the day, but also his 
keen personal interest in Governor Herrick, and all this is 
to be further emphasized by other political and personal 
representatives of the President hereafter coming into the 
State and participating in this contest. 

REPUBLICAN DUTY. 

In view of all this, it is the duty of Republicans to sup- 
port the Republican ticket in Ohio this year without regard 
to the personnel of the candidates, for, whatever else may 
be true, they stand for Roosevelt and Republicanism, and 
that is enough. 



It is not necessary to eulogize or defend either, but it is 
pleasant to note that even his political opponents recognize 
that the war lord of last year has become the peacemaker of 
the world, and that Republicanism was never so universally 
popular as it is today. 

President Roosevelt has not only met the expectations 
and redeemed the promises of his party, but he has so far sur- 
passed all expectations and pledges that the Democrats are 
proposing that he be made the candidate of both parties and 
be unanimously re-elected President in 1908. This is the 
most sensible proposition they have advanced in fifty years. 

To praise such a man would be like tieing ribbons to the 
sun. His achievements speak for him more eloquently than 
any language. He is easily the greatest and most popular 
figure of the world. 

But why and how has he become such ? 

Because he has been a Republican, and has been able in 
a great and striking way to give application and direction 
to Republican principles and policies. All his tremendous 
energy, lofty ideas and patriotic impulses would have been 
so much useless waste of capital if he had been a Democrat. 

THE DEMOCRATIC PARTY. 

That party gives no opportunity to such a man. It af- 
fords nothing for him to work on or work with. It no 
longer has any vitalizing doctrines. Individual Democrats 
are as able and high-minded today as any of their great 
leaders of the past have been, but they have no unity of be- 
lief or purpose. Bryan preaches one kind of Democracy 
and Parker another, and the people have no use for either. 

Our great victory of last year was due in part to the per- 
sonal popularity of President Roosevelt and the still greater 
popularity of Republican policies, but more than all else to 
the utter lack of any common beliefs or common policies or 



purposes of our opponents. They never were very well 
endowed with principles. In all their history they have 
had only four cardinal propositions : slavery, secession, free 
trade and free silver, and now these are all dead or disabled. 
Slavery and secession were slaughtered on the battlefield; 
free trade has been relegated to the rear by protection pros- 
perity, and free silver perished at the ballot box. 

AN OPPOSITION PARTY. 

All the other issues they have from time to time at- 
tempted to make have been mere temporary expedients, 
born of a spirit of opposition to the party in power, and 
consequently passing away with the settlement of the ques- 
tions that prompted them. 

Such was the character of Democratic opposition to the 
policies of reconstruction, the establishment of the National 
banking system, the resumption of specie payments, the an- 
nexation of Hawaii, the acquisition of the Philippines, the 
Porto Rican tariff, the Panama Canal, the Santo Domingo 
treaty, and everything else they have made the mistake of 
opposing. 

If it were not that an opposition party is a necessary fac- 
tor in popular government, it would dissolve and pass out 
of existence. It seems on the verge of doing so anyhow. 
Surely there is nothing in the past to keep it alive and not 
very much in the present or the future. Such a party is 
incapable of dealing satisfactorily with the kind of questions 
that now confront us. 

QUESTIONS OF THE DAY. 

They are business questions and broad American ques- 
tions. Deomcracy never seemed to have any faculty for 
either. Free trade rendered it incapable as to the one, and 



its strict construction views of the constitution have made 
it helpless as to the other. They do not lack appreciation 
for prosperity, but they cannot have that and free trade also. 
They would like to uphold and advance American interests 
throughout the world, but their conception of our organic 
law paralyzes all such forms of patriotism. 

Whether the time will ever come when it will be wise to 
restore that party to power will have to be answered by the 
developments of the future. Certain it is that this is not 
the time. It would be most unwise to intrust it with the 
solution of the questions with which we are now dealing. 
Consider their character. 

THE PANAMA CANAL. 

We have entered upon the construction of the Panama 
Canal. It is a majestic enterprise that will tax our capabili- 
ties to the utmost. We need for its successful prosecution 
the very best, wisest and most energetic management possi- 
ble. There is no room in connection with such a work for 
narrow partisan politics. It is a great American and busi- 
ness undertaking, and must be conducted on the broadest 
and most patriotic lines. 

The commissioners, the engineers and the other officials 
in charge of the work must be the best available. Nothing 
short of that will be satisfactory. With President Roose- 
velt and Secretary Taft in charge, we know the standard of 
efficiency will be the highest. It is not only a privilege, but 
a grave duty, also, to vote to keep it so. 

THE PHILIPPINES. 

We are in the Philippines, and we are there to stay. What 
we shall do there, and how we shall do it, is a great prob- 
lem, worthy of the best thought and the highest quality of 



American statesmanship. We have accomphshed much, 
but much remains to be done. So far the record is highly 
creditable. It will improve as time passes and experience 
educates us to the requirements of the case. Our honor and 
good name, as well as great American interests, are at stake 
there. 

The Republican party is familiar with the work. It takes 
a pride in it ; it has its heart in it. This is no time to cast a 
ballot that might be interpreted as a vote of censure and 
coming change of official authority and power, with Mr. 
Bryan or any other Democrat at the helm. 

THE TARIFF DEFICIT. 

It is the same as to the domestic questions that are en- 
gaging our attention. 

There is a large deficit in our revenues. It amounted to 
$24,000,000 last year, and present indications are that it 
will be larger for the current year. 

We must find a way to remedy this, but what shall it be ? 
There is much difference of opinion on this point. Econ- 
omy, reciprocity and tariff revision have all been suggested. 

I don't pretend to know in advance exactly what will be 
done, but I have entire confidence that the Republican party 
will do the right thing at the right time, and that the Demo- 
critic party, if it had the opportunity, would do exactly the 
opposite. 

When Congress meets the whole subject will be carefully 
considered in the proper committees, and then it will, no 
doubt, be elaborately debated in the two houses, and out of 
it all will come in due time the appropriate measure. 

In advance of that action I can only make predictions as 
to what in my opinion is likely to be done or not done. 

In the first place, whether the deficit continues or not, the 
strictest economy consistent with the public welfare will 



8 

govern in making up the appropriation bills, but the country 
is growing and its demands upon the public treasury are so 
rapidly increasing that it is doubtful if entire relief can be 
secured merely by retrenchment. 

RECIPROCITY TREATIES. 

In the second place there can not be any reciprocity 
treaties considered by the Senate unless the President first 
negotiates them and sends them there. The initiative is 
with him. Until he acts nobody else can. Whether he 
is disposed to undertake to negotiate any such treaties with 
any other countries, and whether such other countries are 
willing to agree with him on provisions that he will be 
willing to accept and ask the Senate to ratify, I do not 
know and so far as I am aware nobody else knows. 

But if he should find himself able to make such treaties 
the Senate, I am sure, would not ratify them unless it was 
found on examination of their provisions that they did not 
seriously injure any important American industry. The 
platform on which President Roosevelt was elected so de- 
clared, and I do not imagine he would disregard that decla- 
ration in negotiating such a treaty, and if he did I know 
the Senate would not ratify or approve his action in doing 
so. 

In short, then, reciprocity should be confined to non- 
competing products and to such products as are able to 
stand a reduction of duties without injury to the industry 
that produces them. Each treaty must, therefore, be tried 
on its own merits, according to its own provisions, and for 
that reason no one can tell in advance what will be done in 
any particular case. 

We have a high duty on wheat, corn, rye, oats, barley, 
potatoes, butter, eggs, milk, cattle, horses, sheep, hogs, 



wool, hides and almost everything else the farmer pro- 
/ duces. 

I have no doubt but for a substantial reduction on these 
commodities, or some of them, a reciprocity treaty could be 
arranged with Mexico and with Great Britain as to Canada, 
and with still other countries ; but I do not need to state, for 
everybody knows it without stating, that the farmers of 
Ohio and the whole country would be hostile to such a 
treaty. 

In consideration of a substantial reduction of the duties 
on earthenware and china, or on glass and glassware, or 
on brick and tile, or on cotton manufactures, or on a hun- 
dred other articles that might be named, corresponding 
reductions can be secured, no doubt, from other countries 
of duties upon our products going there, but what would 
the American producers who would be affected say about 
it? What would become of the potteries at East Liver- 
pool, the tile plants at Zanesville and the glass factories at 
Toledo and other places, and what would happen to the 
capital and labor employed there ? 

CAUSE TO COMPLAIN. 

They would all have just cause to complain, for such a 
treaty would be their ruin, if the reduction should be 
enough to deprive them of needed protection in the conduct 
of their business, and if it should be less than that it is dif- 
ficult to perceive how it could avail anything to increase 
our revenues or widen our markets. 

If we are to sacrifice the protection of any one industry 
to secure larger markets abroad for some other kind of 
American products, it will be difficult to show why we 
should not dispense with protection as to all and thus go 
at once to free trade or a purely revenue tariff, the folly 



10 



of which has been demonstrated as often as the experiment 
has been tried. 

The difficulty of agreeing about reciprocity in competing 
products was demonstrated when the recent Reciprocity 
Convention assembled in Chicago. The delegates were 
chiefly prominent business men, representing the different 
sections of the country and almost every kind of industry. 

Every man of them was enthusiastically in favor of reci- 
procal treaties that reduced duties at the expense of some- 
body else, but all alike were opposed to all treaties that 
reduced duties on products that competed with, their re- 
spective productions. 



NO CHANGES LIKELY. 

The result was a virtual abandonment of reciprocity, 
except in noncompetitive products, and the substitution of 
a proposition to have a maximum and a minimum tariff, 
which is not new, but has been under consideration in a 
tentative way for several years. 

What will be ultimately decided upon with respect to it 
can not be foretold, but it can be regarded as settled that 
no important changes, if any at all, are likely to be made 
in the tariff by treaties of any kind; certainly not for the 
purpose of increasing the revenues, and that we must, in 
consequence, find some other way than by reciprocity to 
make up our deficit. 

REVISION OF TARIFF. 

Another remedy proposed for the deficit is by a revision 
of the tariff. 

Sooner or later there will be revision, for the Republican 
party, while unalterably committed to protection, is not 
wedded to schedules and will not hesitate to make changes 
in rates when changed conditions make it proper to do so. 



II 



There are, no doubt, some duties that can be chang-ed 
now with resulting benefit if nothing more were to be 
considered than the industries to be affected ; but when we 
touch the tarifT we touch the business of the whole country, 
and therefore should not enter upon such a work upon 
slight cause, but remembering that all existing conditions 
must be considered when any kind of tariff legislation is 
enacted. 

A few years ago we had a surplus. Now we have a 
deficit. This must be taken into the account. 

It is manifestly easier to get rid of a surplus by revision 
than to overcome a deficit. If we had a surplus of twenty- 
four millions, instead of a deficit of that amount, we could 
easily lop off that sum by transferring dutiable articles to 
the free list or by reducing rates not levied or longer needed 
for protection. 

But I do not know how we are to materially increase the 
aggregate of our income by reducing duties, except on the 
theory that we will largely increase importations. 

WILL SWELL IMPORTS. 

In other words, if we try in that way to make up our 
deficit we will have to reduce duties to such an extent as to 
swell importations to an amount that will make up that sum 
at the lower rate. 

Many are claiming that the iron and steel duties in par- 
ticular should be reduced. So far as mere protection or 
mere revenue is concerned that may be true, but such a 
reduction, with a view to making up the deficit, is another 
matter. Take these articles for illustration. 

The duty on pig iron is v$4 per ton, and on steel products 
v$7 per ton. If we should reduce these duties 50 per cent 
we would have to import enough pig iron under a duty of 
$2 per ton, and enough steel at $3.50 per ton, to make up the 



12 



revenue now derived from these sources and then in addi- 
tion import enough more to make up the $24,000,000 
needed, and that, it is easily seen, would be an enormous 
quantity of each. Five million tons of pig iron, or almost 
one-third of all we produce, would yield a revenue of but 
$10,000,000; and 4,000,000 tons of steel, almost one-third 
of our entire production, would yield but $14,000,006. 

\ 

DANGER TO INDUSTRIES. 

That would practically make up the deficit, but does any- 
body need to be told that the result would work havoc and 
ruin to two of our greatest industries — to their plants and 
the capital and labor employed in them? Does any man, 
except a free trader, fail to see that the experiment would 
cost vastly more than it would come to ? 

It requires no special power of prevision to see that it 
would disrupt and demoralize, not only the iron and steel 
business, but all kinds of business the whole country over. 

It would work the same injury, if not worse, to the farm- 
ers of the country if we should take their products for the 
experiment, since nothing could be accomplished in the 
direction of increasing revenues, except by an increase of 
the importation of the farm products of other countries, 
and nothing is plainer than that we can not strike such a 
blow at agriculture without destroying the prosperity of all 
other industries. 

It is impossible on this occasion to enter into elaborate 
and detailed argument, but these mere suggestions are 
sufficient, I trust, to show the impossibility of increasing 
the revenues by reducing duties, and increasing importa- 
tions without at the same time doing more harm than good ; 
but that is exactly what the free-trade proclivities of our 
Democratic friends would impel them to do. Everybody 
knows this, and that is why the whole country takes fright 



13 



whenever an important Democratic victory happens to 
occur. 

PROTECTIVE PRINCIPLE. 

It is because of such considerations as these that the 
Repubhcan party favors and will favor all advantageous 
reciprocity treaties that can be made without serious injury 
to any important American industry ; but, on the other 
hand, will oppose any other kind, just as it has declared 
in its platform; and will not hesitate to revise the tariff 
schedules either upward or downward when there is just 
occasion to do so, but will not lower duties to increase 
revenues by stimulating importations, for it believes as 
firmly to-day as ever in its history in the great principle of 
protection on which the Morrill tariff, the McKinley tariff 
and the Dingley tariff were all alike founded, and under 
all of which alike prosperity was brought to the American 
people, but never such prosperity as we are blessed with at 
this particular time. 

For the fiscal year ending June 30, 1905, our exports 
amounted to $1,518,561,720 and our imports to $1,117,- 
512,629, leaving a net balance of trade in our favor of 
$401,049,091. 

For the past year our exports have increased over the 
preceding year $57,734,449, while our imports have in- 
creased over those of the preceding year $126,425,258. 

These are eloquent figures. They show a healthy for- 
eign trade. It would be hard to improve the situation they 
represent, but easy to destroy it. A long first step in that 
direction would be a Democratic victory in Ohio this year. 

If other countries enter upon a tariff war with us, as has 
been threatened, we may have trouble to maintain and in- 
crease our markets as our rapidly increasing production 
demands, but it will only emphasize our need for the wis- 



14 

(lorn of the Republican party, which will prove equal to 
the task, as it has to all other tasks it has undertaken. 

We have just reached the end of a tariff war with Rus- 
sia, with the result that the United States has been com- 
pletely vindicated both as to her legislation and her action 
under that legislation. We have done nothing and do not 
propose to do anything in the levying of tariff duties, ex- 
cept only that which is in accordance with the recognized 
rights of our Government to provide for the best interests 
of our people. No country has a right to complain of such 
a policy and no country will long persist in legislation that 
is based on a spirit of reprisal or punishment. 

RAILROAD LEGISLATION. 

Another domestic business question has arisen with re- 
spect to the railroads. It has been charged that freight 
rates are too high; that rebates are secretly given and that 
discriminations are practiced, and it is proposed that all 
these evils shall be cured by conferring the rate-making 
power on the Interstate Commerce Commission. 

A great deal of testimony has been taken of shippers and 
railroad officials and experts, and many interesting and 
valuable statistics have been gathered. 

From this evidence it appears that there are various kinds 
of practices and abuses that should be prohibited, and there 
will no doubt be legislation of that character at the approch- 
ing session of Congress, for there can be no question about 
the power or wisdom of appropriate regulation of the rail- 
road business of the country. But it also appears that the 
United States is much more fortunate in her railways than 
any other country. 

The following article, based on an official bulletin issued 
loy the Department of Commerce and Labor, appeared in 
The Cincinnati Enquirer a few d^ys ago : 



15 

"Compilations made from foreign and domestic sta- 
tistics show a freight rate on Enghsh roads per mineral 
ton-mile of 1.93 cent. A ton-mile of merchandise or 
live stock costs 2.94 cents, and on all commodities an 
average of 2.32 cents. Against these the figures for 
the United States are startlingly small, being 0.58 cent. 
On German roads it is 1.42 cent, on French 1.55 cent. 
Austrian 1.16 cent and Hungarian 1.30 cent. 

RATES IN ENGLAND. 

England's passenger rates per mile, according to the 
business magazine, on the same classes as there cited 
for the United States, were 4 cents, Germany's 3.8 
cents. For their average day's wages workmen can 
travel as follows : American 65 miles, British 35 miles, 
German 53 miles, French 40 miles, Belgian 36 miles, 
Italian 38 miles and East Indian 21 miles. 

On American roads locomotive engineers average $4 
a day, England $1.62, Belgian $1.01 ; American fire- 
men get $2.28 a day, British 91 cents, Belgian 72 cents. 
Railroad laborers in the United States get from two to 
four times as much as on foreign roads. Forty per 
cent, of the gross earnings of American railroads goes 
to labor, while only 25 per cent, goes to capital. In 
England labor gets 27 per cent., capital 38 per cent. ; 
in Germany the division is equal." 

It will be noted that rates are much lower in this country 
than in any other, although labor and other costs of opera- 
tion are much higher. Shippers and railroad men alike 
confirm these statistics by testifying that rates in this coun- 
try are on the average as low as could be expected, especi- 
ally for long distances. 

QUESTION OF REBATES. 

With rates not higher than what is reasonable and just 
under all circumstances shippers are next most concerned 
abcmt rebates. Every man wants to know, and has a right 



i6 



to know, that he is treated precisely as all his fellow-ship- 
pers are treated ; that his competitors do not receive a pref- 
erence that will enable them to undersell him and break 
him up and drive him out of business. ■ For years the giv- 
ing of such rebates was a common practice, resorted to by 
railroads in their competition with each other for freight 
traffic. Its unjust and ruinous consequences were univer- 
sally felt. 

To remedy this evil, with others, in February, 1903, the 
Congress passed what is commonly known as the Elkins 
law. The provisions of this measure were carefully con- 
sidered and framed with a view to breaking up and de- 
stroying the whole rebate system, to the end that all ship- ■ 
pers might enjoy the same rights and be treated with abso- 
lute equality in the use of the railroads of the country for 
interstate commerce. 

It is very gratifying to be able now to state that railroad 
men and shippers alike testify with substantial unanimity 
that the law has been so successful in its operation that the 
granting of rebates has been practically discontinued, or 
that, if not wholly discontinued, the law has been found, 
by practical tests of its efficiency, to be ample, if properly 
enforced, to thoroughly accomplish its purpose. 

DISCRIMINATIONS MADE. 

The remaining ground of complaint is that discrimina- 
tions are practiced. 

There are so many forms of discrimination that this 
charge is a very broad and serious one. There may be 
discriminations between individuals, between commodities 
and between localities. They may be practiced by giving 
rebates, by classification, by false weights, by refusing or 
neglecting to furnish cars equally and alike to all shippers, 
by allowing terminal charges, elevator charges, or by 



17 

inequalities of rates as between different points, by charges 
for private cars, refrigerator cars, icing charges, etc. 

The methods and devices resorted to are so numerous 
that it is almost impossible to enumerate them, but for every 
such discrimination, no matter how practiced, the law as it 
now stands was intended to provide a remedy. 

The difficulty is not, therefore, with the spirit of the law, 
but with its text. The statutes applicable can be made 
much more explicit and effective, and as a result of the in- 
vestigations that have been made and the consideration that 
has been given to this subject there will undoubtedly be 
appropriate legislation enacted at the next session of Con- 
gress to prohibit and punish in so far as it may be possible 
so to provide, all these discriminating abuses. 

MANY ONLY APPARENT. 

But the truth is that, while there are many kinds of dis- 
criminations to be complained of, there are, on the other 
hand, many alleged discriminations that investigation has 
shown are only apparent. 

For instance, the rate on freight from New York to San 
Francisco is less than half what it is from New York to 
Denver and other intermediate places, practically only half 
the distance. By comparison this looks like willful dis- 
crimination and extortion as against these intermediate 
points, but it isn't. 

There is a good reason for what at first thought seems 
so inexcusable. 

It has been shown that the rates to these intermediate 
points do not yield to the railroads more than a fair return 
for the service rendered ; that they are not only reasonable, 
measured by that standard, but that they are much lower 
than the rates charged for a similar service in any other 
country. 



The explanation for the difference is in the fact that the 
through rates to San Francisco are unreasonably low, due 
to the fact that the shipper from New York has an option 
to ship by water, and the railroads must accept the low 
rates charged for water transportation for the through haul 
or else lose the business altogether, and they prefer, inas- 
much as they must make the haul anyhow, to take the busi- 
ness at these low rates rather than lose it altogether, not- 
withstanding if they could not make up for it elsewhere they 
would be bankrupted. 

CINCINNATI INSTANCE. 

Cincinnati affords another illustration. That city is 
situated only about one-half the distance from Atlanta that 
New York is from Atlanta, yet New York has practically 
as low an all-rail rate to Atlanta as Cincinnati has, but 
why? Not because the railroads want to discriminate 
against Cincinnati, but because the New York shipper has 
the advantage of water transportation, with its low rates, 
for the greater part of the distance to the near-by points 
on the coast. 

Illustrations might be multiplied almost without number 
to show that what appear to be discriminations are in many 
instances found on investigation to be due to the law of com- 
petition and the result of natural forces and conditions, over 
which neither Congress nor the railroads have any control. 

There are, however, many cases for which there is no 
such excuse, and for which we must and will provide an 
effective remedy. But it does not follow that to remedy 
these abuses the rate-making power should be conferred 
on the Interstate Commerce Commission, as the Ohio 
Democratic platform of this year proposes. 

I believe such a provision is unnecessary to correct the 



19 

evils complained of and that it would be both unwise and 

unjust. 

The Interstate Commerce Commission is composed of 

five \'ery capable, upright gentlemen, who have rendered 

good service, but neither they nor any other similar body, 

acting, as they must act, could satisfactorily discharge such 

a duty. 

The Supreme Court said, as to the rate-making powder, in 

what is known as the maximum rate case that, on account of 
"the large amount of property invested in railroads, the 
various companies engaged therein, the thousands of 
miles of road, and the millions of tons of freight car- 
ried, the varying and diverse conditions attaching to 
such a right, is a power of supreme delicacy and im- 
portance." 

The rate making is probably the most complicated and 
difficult work connected with transportation. The rail- 
roads employ for this work the brightest and most skillful 
men they can find. These men command large salaries 
and earn them. Their work is of scientific character. It 
can not be done except by experts. 

The railroad systems of the country have probably more 
than 5,000 in their employment to-day doing nothing else 
but making transportation rates for the traff.c that is being 
hauled. Their work extends from ocean to ocean. 

CONCERNS EVERY SECTION. 

It embraces every section, every commodity, every con- 
dition, every classification. It is their business not only 
to make rates that will yield proper revenue to the rail- 
roads, but also from time to timie so to reduce, alter and 
change rates as to develop the country through which the 
respective roads pass, encourage new industries along their 
lines, meet new competitors that come into their territory, 



20 



and from year to year, and month to month, and week to 
week, and day to day, and ahnost hour to hour meet the 
ever rapidly changing conditions that are brought about 
through the natural operation of the forces of trade and 
commerce. 

They must, of necessity, meet as nearly as possible the 
requirements of their patrons. They must, therefore, not 
only make rates as low as justice to the railroads will 
allow, but they must make them interdependent, so that 
shippers can with facility send their products throughout 
the whole country. 

A better way may be found of making these rates than 
that which is now in vogue, but I do not believe it possible 
for Congress to provide it by entrusting such a complicated, 
delicate and vitally important duty to any such agency of 
its creation as is that which has been proposed. 

There are serious legal questions involved in such a 
proposition. There are numerous difficulties of a practical 
character that must arise the moment the Government un- 
dertakes such a duty. 

It is impossible on this occasion to take up these ob- 
jections in detail. I content myself, therefore, with one 
or two general observations. 

FREIGHT BUSINESS DOUBLED. 

During the last eight years the freight business of the 
country has doubled in volume. In consequence there has 
been and is now a congested condition everywhere with 
respect to the transportation of freight, and the railroads 
in consequence have been driven to the necessity of lower- 
ing grades, straightening curves, enlarging tunnels, 
strengthening bridges, multiplying equipment and increas- 
ing motive power to enable them to meet the demands upon 
them of the business of the country. 



21 



For improvements of this character they are shown to 
have expended during the last eight years the enormous 
sum of $1,500,000,000. 

From one end of the land to the other this kind of work 
is now in progress. If this increase of business continues 
for eight years more at the same rate of progression, and 
the indications are that it will, it will be impossible for the 
railroads to handle it, unless in the meantime, in addition 
to the general improvements mentioned, they double and 
quadruple their main lines, or double and quadruple their 
existing tracks and equipment. 

OF VITAL INTEREST. 

In this work we are all vitally interested. We want it to 
go forward without let or hindrance, to the end that busi- 
ness may be conveniently and economically transacted, and 
also and especially that there may be the greatest possible 
safety for life and limb to the millions who travel. We 
should take heed, therefore, that we do not destroy or im- 
pair the enterprise or the credit and financial ability of the 
railroads to raise and expend, in the way indicated, the 
hundreds of millions necessary to carry forward this great 
work. 

To take control of the rate-making power is to take 
charge of the revenue of the roads, and that means that 
the Government is to assume the responsibility, not only 
of determining what rates shall be charged, but also of 
necessity how much money a railroad shall be allowed to 
make, and thus determine, also, of necessity, what improve- 
ments it shall be permitted to make, what extensions it 
may build, what equipment it must provide, what new 
tracks it may lay and what kind of service it shall render, 
for rates are so interdependent that there is no such thing 
possible as changing one without affecting many. 



22 



DELUSION IS REFUTED. 



Any other notion is a delusion refuted by conditions and 
experience. In short, if the Government is to determine 
how much money a railroad shall be allowed to make it 
must of necessity determine, also, what expenditures shall 
be permitted. None of these things can be escaped and 
none of them can be done by the Government so well as 
they are now being done by the companies themselves. 

Such has been the experience of every country that has 
undertaken such a task, and will be ours also under similar 
circumstances. 

The time was, and not very long ago, when it was a 
maxim recognized and advocated by all political parties, 
but especially by the Democratic party, that that country 
was best governed that was least governed. Now the ten- 
dency seems to be in the opposite direction; for every ill, 
real or imaginary, from which we may suffer, govern- 
mental relief or control is sought. Much good has been 
accomplished in this way, but the pendulum should not be 
allowed to swing too far. 

Liberty of trade and commerce is the life that imparts 
competition and secures a healthy and vigorous develop- 
ment of our resources. If it be unduly hampered and re- 
stricted greater evils will result than any we are striving 
to escape. 

REPUBLICANS KNOW DUTY. 

At another time I shall pursue this subject further. My 
only purpose now is to indicate the serious character of 
what is proposed and the necessity for the most intelligent 
and considerate solution of the difficult problem. 

The Republican party is alive to its duty in this respect 
and will not desist from its efforts until it has worked out 
the best possible results. 



23 

We have 212,000 miles of railroads in the United States, 
and they have issued for their construction, equipment, 
improvement and maintenance $16,000,000,000 in round 
numbers of railroad bonds, stocks and other securities, 
most of which are now held by our own citizens. 

All classes of people and all kinds of business are inter- 
ested in the subject and will be affected, favorably or un- 
favorably, by whatever may be done. A false step might 
work the most serious injury to the country's welfare and 
the people's prosperity. 

It is not necessary to say that the Democratic party is 
incapable of satisfactorily dealing with such a complicated 
and difficult problem, because it is sufficient for present pur- 
poses and more agreeable, to say only that the Republican 
party is far better qualified for this most important work. 

If this be true we shall prove unfaithful to ourselves if we 
■do not continue it in power, for it is our duty to all interests 
involved and to the country as a whole to choose at this 
time, as well as at other times, the most acceptable agency 
that can be secured for the administration of our public 
affairs." 



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